If you want to apply for a mortgage in Poland, steady income is one of the ‘must haves’. Luckily, Polish banks accept most types of income – including those from civil-law contract and rental income (if you’re a landlord). In this post I’ll describe banks’ approach to this type of income so you will learn how to prepare for dealing with a bank.

In the previous posts I’ve written about the most common sources of income – employment contract and self-employment so you may also check it if it’s your case.

Income from civil-law contracts

In Poland, it is a popular form of employment, especially in such sectors as services. Under the concept of civil law contracts, we usually distinguish two types of contracts: a contract of mandate (umowa zlecenie) and a contract for a specific task (umowa o dzielo).

The good news is that if you get income from a contract of mandate or a contract for a specified task you still have a chance to get a mortgage.

Minimum income history – 12 months

mortgage-polandNearly all banks require a 12-month history. It does not need to be the same employer, but it is certainly a preferred state of affairs for a bank. Many banks also expect that the last contract will be in force for a specific period of time – usually 3 or 6 months from the moment of filing a loan application.

Please note! There are some exceptions and you will not always have to wait 12 months to start the loan process.

I’ll give you examples of these exceptions below:

  • mBank – only 6 months of internship, provided that it is the same employer
  • BGŻ – it is enough to have 3 months of income from a civil contract if you are also employed on a contract of employment with the same employer
  • Raiffeisen – allows for the possibility of accepting income from 6 months if such income does not constitute more than 50% of the total income of all applicants submitting an application

What documents will the bank require for income from civil law contracts?

  • contracts – almost every bank will ask for copies of the contracts, so do not throw them away, they may be useful 🙂 The bank will ask you for contracts from the period under review, i.e. most often the last 12 months.
  • bills – just like contracts, keep the bills you issue to the contractor
  • account statement – the bank will verify whether the payments to the account match the rental fees agreed upon in the contracts you have submitted
  • PIT (a tax return) for the last year

Rental incomes

So you are a landlord. I always smile when I hear this English expression for a person who is a property owner and rent it. It’s always nice to be a ‘lord’ 🙂

If you are that kind of ‘lord’, your incomes from that source may boost your credit affordability, so I’ll tell you a few words how to meet banks’ requirements in this field.

12 months – minimum period of rental income

As with other sources of income, if you want to apply for a mortgage loan, your bank will need some track of how your income has been generated. When it comes to rental income,  usually you will need to provide a proof of 1 year’s income from this kind of activities. There are also exceptions – mBank again, which will require only a 6-month period.

Two approaches to settling the property rental tax

You can settle the property rental tax in two ways, as a ‘natural person’, by submitting PIT28 or a person running a business (sole trader) – PIT-36 or PIT-36L. From the point of view of applying for a mortgage loan it makes no difference for the bank – both methods are acceptable.

  • PIT-28 – you make monthly advance payments towards tax in the amount of 8.5% of income from rent (regardless of the costs you incur)
  • PIT-36 / PIT-36L – if you run a business, you can account for the rent as part of your business activities. You will pay a higher tax (e.g. 18% or 19%), but you can deduct from your income all the costs associated with maintaining and renovating the apartment.
    For more information on business income, please visit the above-mentioned article: Does bank like your income? Vol. 2. Self-employment

Make your tax payments on time!

civil-law-contract-polandMost banks will want to see your advance payments for property rental tax.

Therefore, if you are considering taking out a mortgage loan in the nearest future, pay your monthly advance premiums on time. Banks don’t like late payers, especially when it comes to taxes.

On the other hand, if you happen to be a few days behind with the payment, it will not cancel your chances for credit (it may happen to anyone :-). It is important that you are not notorious for this bad habit.

What documents will the bank require in connection with rental income?

  • tenancy agreements
  • account statements – to check tax transfers and the receipt of rent from tenants
  • Tax return – aforementioned PIT-28 or PIT-36 tax return forms
  • ownership deed / land and mortgage register number – i.e. confirmation that you are the owner of the real estate

Simple? I hope so.

If you would like to have more detailed information concerning your situation, please  contact a mortgage broker, who will help you choose the best mortgage loan offers and determine your creditworthiness.

You can also write to me – kamil@polishmortgage.pl (I will answer all your questions about mortgage and cash loans).

Thank you for dropping by. See you next time!


Mortgage broker & credit expert. I help clients to find best mortgage deals saving their time and hassle.